Ordinance 2015-470 - Laserfiche WebLink

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Item Coversheet Page 2 of 2 As an example, we can take the Education and Cultural infrastructure bonus. A developer can obtain up to 0.20 of Floor Area Ratio(FAR) if he/she participates in this FAR bonus with the assumption of owning an acre of land. Please note that 0.20 FAR is equivalent to 4 bonus participation units. The potential increase of development rights is 8,712 square feet of FAR which will require a payment of $288,000 (4'72,000.00=$288,000)for this bonus on the acre of land. Meaning, each additional square foot from the Education and Cultural infrastructure bonus will cost$33.05. As shown in the table above, the proposed increase will yield to an increase of$12.86 per square feet of FAR bonus. Based on the analysis provided in this memorandum, an increase in the price of the participating unit under the bonus program is warranted. The value of the bonus participation unit is still far less than the current market value on a per square foot basis of the market costs for condominium unit on a per square foot basis. According to the Miami Development Authority Annual Residential Study Update (February 2015), the cost per square foot in condo market varies from $383 to $869 per square feet. As such, I • believe we should recommend an increase in the price of the participating unit based on the costs analysis that City has followed since the creation of the bonus system. The following is an analysis of the bonus pricing increments over-time: Bonus value Bonus value Year Ordinance per participation unit per square footage Percentage increase 2002 2002-165 $14,000 $6.43 Creation of bonus system 2004 2004-192 $35,000 $16.06 150% 2006 2006-257 $50,000 $22.95 43% 2007 2007-292 $72,000 $33.05 44% 2015 Proposed $100,000 $45.91 42% ATTACHMENTS: Description LPA Resolution Ordinance Notice of 2nd Rdg LPA Herald Item Number:9.C. • http://sunnyisles.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=1814 12/11/2015